Thursday August 18, 2016
The city is ready to move forward with two projects for City Center, and voters will be asked for their support in a bond vote to take place in November. A public hearing on the proposed ballot question was held Monday, August 15, regarding a request for authorization of up to $5 million, for the purpose of financing capital improvements and costs related to City Center Park (Dumont Park) phase 1 and Market Street reconstruction, and costs related to administering the city’s TIF District. The TIF District was established in 2012 to fund capital improvements in City Center and support the establishment of a new downtown. The city must move forward by March 2017, according to state statutes which require that debt is incurred within 5 years of establishing a TIF district.
The council discussed and unanimously approved the necessity resolution for the ballot question to be put before voters as Article 1 in the November 8, 2016 election, regarding authorization to incur debt for funding the capital improvements and related costs for these long awaited projects.
While some funding is already in place (over $5 million in Federal funds for Market Street) debt will be needed to finance the construction of these projects. In addition, the city cannot access TIF District increment (revenues) to pay for costs until voters have approved the city to do so. The city hopes to pay off the debt with revenue generated by the project and estimates that the Tax Increment Revenue from existing and expected development in the City Center TIF District will be sufficient to pay the costs of the proposed improvements and the related costs and repayment of any indebtedness costs to finance the improvements.